Head of Ukraine’s national foreign intelligence service – “We have studied…the strengths and weaknesses of the enemy. We are aware of Russia’s long-term plans…at least until 2030.”
GDP can increase during a war, but that’s not as beneficial as growth during peace. After all the military equipment produced doesn’t last long or provides much long term value to the economy. A civilian truck, excavator, or train locomotive can create more value for an economy for decades. A trank or artillery piece will only last for a few months during war and only causes destruction, no creation. So yeah, nominally the economy might increase, but all that labor might be for nothing in the end.
It has been very impressive how Russia transformed its economy and circumvented sanctions. Production of military equipment is high and still increasing in parts. Goods for domestic consumption are also doing okay and standard of living hasn’t fallen much.
Of course none of this is sustainable and has only been achievable by all kinds of tricks, but for now it works.
GDP can increase during a war, but that’s not as beneficial as growth during peace. After all the military equipment produced doesn’t last long or provides much long term value to the economy. A civilian truck, excavator, or train locomotive can create more value for an economy for decades. A trank or artillery piece will only last for a few months during war and only causes destruction, no creation. So yeah, nominally the economy might increase, but all that labor might be for nothing in the end.
It has been very impressive how Russia transformed its economy and circumvented sanctions. Production of military equipment is high and still increasing in parts. Goods for domestic consumption are also doing okay and standard of living hasn’t fallen much.
Of course none of this is sustainable and has only been achievable by all kinds of tricks, but for now it works.